SUBJECT TO WHEN THE SELLER FILES BANKRUPTCY AFTER

[Amy May]

EXAMPLE:  I have a property quit claimed to me and the sellers mortgage is still in tact.  I have been the owner of the property for about a year.  I have been told the old owner may need to file bankruptcy. Is that a problem since the title is no longer in their name? How does that effect the buyer. Is it as simple as paying off the sellers mortgage before they file bankruptcy?  What happens if the buyer is not made aware that later on the seller has filed bankruptcy?  What are the ramifications for the seller or the buyer?